Tuesday, February 4, 2014

20 years of explosive growth in China's trade ties with Kampala

----- Forwarded Message -----

Sent: Tuesday, February 4, 2014 9:59 AM
Subject: [changemombasa2012] 20 years of explosive growth in China's trade ties with Kampala


Very well said.To conceptualize the whole thing to the average of percentage ratio of the GDP of Uganda, including the rest of other African countries produce, results still reflects negativity.It is clear there is no trading balance or tangible essentials to justify success story indicators for economic progress in the force of gravity.The consequence for example is as a result that........Uganda and Rwanda goes into its neighbors for insurgencies to steal resources by armed force for free and fills up its own economic void temporarily.While Uganda and Rwanda are involved in military invasions for incursions to provide and supply for China's economy through the Corporate of Special Business Interest Global network, it is only 1% that is benefiting against the 99% of world population.

While China is growing, the rest of Africa and Europe is collapsing.The equation does not add up.It is because there is a disconnect of Economic flow spin somewhere that is punctured and has blocked the smooth flow of Trading exchange balances of supply vs. demand. This blockage is caused by China’s corrupt influence in Africa.But what China leaves behind to the world (i.e. Africa as supply vain) is pain and suffering to include pollution with livelihood and survival derailment.It is a burden the world must shoulder and put right.It is the Chinese pollutants that must be put to check to face reality. It does not make any logical sense to allow Museveni, Kagame with our African leaders along with their Corporate networking to destroy the world through greed and by not caring as long as their comfort zones of 1% of the world population feel satisfied in their sharing of business exchanges while the rest of 99% of the world population are pushed to the edge of collapse and others face extinction. This in itself is a defeatist ideology theory we must agree to fix.....Otherwise, even natural oxygen will soon be taken away and be controlled by the Chinese, let alone water.......Check it out...............!!!

Is it possible to get out of economic collapse of many and environmental pollution mess and create an enabling balanced platform??? By all means, Yes......but, it requires a conducive environment where peace and unity for common good is made available, and where people are committed in determination to selling positive solution that are mutually shared fairly in a balance as Ways and Means for Way Forward………..This means, Chinese corruption influence with irregular, illegal, unconstitutional with unjustified occupation in Africa is not the solution, Democracy is. We must therefore protect Democracy and make it work......where Government is for the People and Government must give priority to public mandate first in order to engage in a balanced trading practices where opportunities are made available to many without manipulation or discrimination.
When minds are engaged positively, and jobs are in plenty, no one will think of fighting or engaging in crimes...... There shall be peace and harmony in plentful............
Let us all make the year of 2014 a year of breakthrough from too much pain and sufferings..........it can be done people!!!!

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
----- Forwarded Message -----
From: account146w qt4
To: "wanakenya@googlegroups.com"
Sent: Tuesday, February 4, 2014 12:59 AM
Subject: RE: 20 years of explosive growth in China's trade ties with Kampala


Uganda , china trade is so unbalanced that if I were Ugandan i would not be proud about it.
Read below what they have built in Uganda. most of the things ugandans can build themselves. Why are they not building industries there?. Economic Policy Research centre has released these : Uganda has comparative advantage in only 50 products with China out of 4401 products offered under Special Preferential Treatment(SPT).
Simple conclusion: Uganda´s trade with China inspite of the presence of SPT in terms of export remains skewed in favour of China. This goes to all african countries dealing with China.
Date: Mon, 3 Feb 2014 13:57:13 -0800
From: jbatec@yahoo.com
Subject: 20 years of explosive growth in China's trade ties with Kampala
To: progressive-kenyans@googlegroups.com; wanakenya@googlegroups.com; changemombasa2012@yahoogroups.com; mabadilikotanzania@googlegroups.com
Good People,
The things of Museveni is headache, but even though, still let him get more pressure to just remove Uganda troops from South Sudan.
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
Check it Out !!!!!!!

Why Is China Buying So Much Methanol?

By Celan Bryant | More Articles
February 3, 2014 | Comments (1)

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Methanol is an alternative liquid-fuel source. It is also used in the production of acetic acid, formaldehyde, plastic, adhesives, foams, plywood sub-floors, solvents, and windshield-washer fluid. In March 2013, IHS Chemical found that the demand for methanol was growing faster in China than any other part of the world -- the country increased consumption 23% from 2010 to 2012 and is expected to consume half the world's production of methanol this year, which is about 32 million tons. By contrast, the United States currently consumes about 6.5 million tons. IHS Chemical expects the demand for methanol in China alone to triple by 2022.
So, what's fueling China's interest in methanol?
On Dec. 14, China became the first nation in 37 years to land on the moon. As China's economy grows and becomes increasingly more industrialized, the demand for fuel is outpacing supply -- everyone wants a car, and you can't start a car without fuel. In addition to needing alternative sources of fuel, China is also transitioning away from burning coal and oil. Unfortunately, natural gas is more expensive and harder to find.
The process of turning natural gas into methanol
Methanol, also known as wood alcohol, can be made from a variety of fossil fuels, including natural gas, which is cleaner than coal or oil. Many central-heating systems in China are dependent on coal, which means northern China is experiencing the worst bouts of toxic air this time of year.
From a logistics perspective, natural gas has no special requirements for safe transport. It is biodegradable, non-carcinogenic, evaporates when exposed to air, and dissolves when mixed with water -- it doesn't impose the same environmental and health risks associated with petroleum. In the case of spills, it evaporates or biodegrades.
Natural gas is usually produced in liquid form where it can be sent to plants via a pipeline and shipped to China with the use of freighters in a process like the one outlined below by Northwest Innovation Works. When combined with steam and heat, natural gas can be synthesized into carbon monoxide, carbon dioxide, and hydrogen. A "catalyst" is then used to spark a chemical reaction and viola! Pure methanol is created.
Source: Northwest Innovation Works
Northwest Innovation Works is a socialist/capitalist collaboration between China's government and BP (NYSE: BP ) , formerly British Petroleum. The joint venture is looking into investing $3.6 billion in the building of two facilities in Washington state and Oregon. The facilities would produce 10,000 metric tons of methanol daily by burning 640 million cubic feet of natural gas.
Storage facilities to hold the methanol are already being built in Dalian, a city of 3 million people in northeast China. Northern Chinese cities are more familiar with air-quality issues, so the demand for natural gas and methanol is greater. The northeast Chinese city of Harbin had a severe event in October when air quality readings reached the maximum of 500 -- people couldn't see past traffic lights as schools were cancelled and traffic was paralyzed.
Investing in methanol
Most methanol plants based in the U.S. are in the Gulf Coast. Natural gas has traditionally been inexpensive in Texas and Louisiana. The Pacific Northwest is obviously a better geographic position to China than the Gulf Coast, but Northwest Innovations won't be able to add production to the market until 2018. Who will take advantage of the gap in demand until then?
Celanese (NYSE: CE ) is a specialty-materials company that processes methanol, carbon monoxide, and ethylene. It is the world's largest producer of acetyl products. The company has entered into a joint venture with Mitsui of Tokyo to produce methanol in Clear Lake, Texas, however production won't be ready until 2015, and annual returns on the stock are low.
LyondellBasell (NYSE: LYB ) , a company based in the Netherlands, produces methyl tertiary butyl ether (MTBE), which is a clean-burning gasoline component. The company recently announced plans to restart its methanol plant in Channelview, Texas. "The methanol plant restart is the first in a series of U.S. Gulf Coast projects by LyondellBasell to take advantage of the natural gas price advantage that we enjoy from shale gas," said the company.
With record fourth-quarter earnings, the leading producer of methanol in the world is Methanex (NASDAQ: MEOH ) -- what an exciting time for this company. Headquartered in Vancouver, Canada, the stock had a one-year return of 75% and has a market cap of $5.8 billion. Methanex sold more than it could produce last year, as prices for methanol went from $425 to $438 per tonne.
The Foolish bottom line: Get on the "Green Bridge"
In exchange for cleaner air in China, the United States gets 1,000 construction jobs and hundreds of permanent jobs. The company refers to the partnership as the "Double Green Bridge." If you want to get on that Green Bridge, the most efficient route is Methanex.
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Methanol is the simplest alcohol compound, consisting of one carbon atom and three hydrogen atoms arranged as a methyl group (CH3), which is joined to an oxygen and a hydrogen atom in a hydroxyl group (OH), giving the chemical formula CH3OH. It may be referred to as methyl alcohol, wood alcohol, or by the obsolete term carbinol. The compound differs from ethanol — the type of alcohol found in beers, wines and spirits — and is toxic. It is a colorless, tasteless, flammable liquid that is quite volatile and has a slight smell. Methanol is used in many industrial processes, in some types of antifreeze, as a fuel, and in the production of biodiesel.


The compound is widely used as a raw material in the production of other chemicals, particularly formaldehyde, which in turn is used in the production of plastics. It is added to ethanol intended for industrial or household cleaning purposes, as opposed to drinking, to render it undrinkable. This avoids the taxes payable on alcoholic drinks. The resulting product is known as denatured alcohol, or methylated spirit, and typically contains about 10% methanol. Methyl alcohol is also an ingredient in some antifreeze mixtures, in windshield wiper fluid, and is used as a solvent in various paints and varnishes.
A growing application of methyl alcohol is as a fuel, either directly, or in the manufacture of biodiesel. It has been used in pure form for some time in top-end racing engines, drag racers and in radio-controlled model airplanes, but it is being advocated as a viable alternative to fossil fuels for more general use. Like fossil fuels, methanol produces carbon dioxide during combustion, but has the advantage that it can be manufactured cheaply from renewable resources. It also burns more cleanly than fuels such as gasoline, as it does not produce smoke, soot, or large amounts of harmful hydrocarbon compounds.
In the methanol economy, this compound would be the common fuel, with non-renewable fuels having a minority share or not being used at all. The Nobel Prize winning chemist George Olah is a strong advocate of this path. Proponents point out that methyl alcohol is relatively cheap to produce, can be manufactured with little or no waste, is efficient to store, and can be made from sources other than fossil fuels. Also, while conversion to a hydrogen economy would require major changes in infrastructure, methanol could be phased in relatively easily as it can be mixed with fossil fuels such as gasoline to produce hybrid fuels while making the shift.
Potential drawbacks include the fact that methyl alcohol is corrosive to some metals, especially aluminum. This would make it necessary to replace some storage tanks, pipelines and engine parts. It is also more toxic than many other commonly used fuels, including gasoline.
Instead of using the compound as a fuel in itself, methanol can be used to produce biodiesel, which can be burned in some diesel vehicles without expensive modifications to the engine. The methyl alcohol is heated with vegetable oil, along with sodium or potassium hydroxide, which acts as a catalyst. This process turns the vegetable oil into smaller molecules that are more suitable as fuel, and produces glycerol as a by-product.


Humans can tolerate very small amounts of methyl alcohol — which is in fact present in tiny quantities in some foods — without becoming ill, as the body is able to rid itself of this harmful chemical to some extent, but in larger amounts, it is toxic. In the body, it is converted into formaldehyde and formates, which are damaging to cells. In particular, they can affect the optic nerve, and interfere with vision. Swallowing a third of a fluid ounce (about 10 milliliters) or less could cause blindness, and one or two fluid ounces (30 – 60 milliliters) could prove fatal. Methanol poisoning may occasionally result from accidental swallowing, but another possible route is through the intentional drinking of methylated spirit as a cheap alternative to alcoholic drinks.


Traditionally, methyl alcohol has been produced by the combining of carbon monoxide and hydrogen, and by reacting methane with steam. Both processes are carried out under pressure and using catalysts, and usually the raw materials have come directly or indirectly from fossil fuels. To reduce reliance on these fuels, however, the production of methanol from biomass has expanded significantly. Biomass can be vegetable material grown specifically for this purpose or a variety of plant-based waste materials. It is broken down into carbon monoxide and hydrogen, which is then used to produce the alcohol.

20 years of explosive growth in China's trade ties with Kampala

In this 2006 photo, Chinese nationals living in Uganda wave the two country’s flags at the Entebbe International Airport as they await the arrival of China’s Prime Minister Wen Jiabao in the country. Photo/Morgan Mbabazi
In this 2006 photo, Chinese nationals living in Uganda wave the two country’s flags at the Entebbe International Airport as they await the arrival of China’s Prime Minister Wen Jiabao in the country. Photo/Morgan Mbabazi
By BENON HERBERT OLUKA Special Correspondent

Posted Thursday, January 30 2014 at 18:02
In Summary
  • Analysts say besides its large appetite for the raw materials exported by countries like Uganda, China has managed to develop close economic ties with the East African nation because of its non-interventionist approach in the politics of countries with which it is doing business.
At the time the government of China started the construction of a 40,000-seater stadium on the outskirts of Kampala in April 1993 — hitherto Uganda’s largest sporting arena — there were only a handful of Chinese investors in East Africa’s third largest economy.
The $36 million facility was one of its first major infrastructure projects in Uganda, and trade between the two countries was on a small scale.
Although China was one of the first countries to establish ties with independent Uganda in 1962, statistics from the Chinese embassy in Kampala show that the volume of trade between the two countries never exceeded $10 million before the 1990s.
A little over 20 years later, the relationship between Uganda and China has grown by leaps and bounds. Since then, China has offered aid which has helped Uganda pave hundreds of kilometres of its roads, and construct a $6 million hospital in Kampala, an agricultural technology demonstration centre, as well as the multi storeyed buildings serving as the headquarters for Uganda’s Ministry of Foreign Affairs and Office of the President.
Speaking at celebrations to mark the 64th anniversary of China’s National Day at the Chinese embassy in Kampala last October, Uganda’s Prime Minister, Amama Mbabazi, outlined the wide reach of the Asian economic giant’s support to the country.
“China is firmly supporting Uganda’s development agenda through increased trade, infrastructure development, and exchange of expertise as well as impacting skills to our people,” he said.
That support has played a significant part in enabling China, the world’s second largest economy after the US, to tap into trade opportunities in Uganda.
According to the latest available official statistics, bilateral trade between Uganda and China reached $538 million in 2012, representing a nearly 35 per cent increase compared with the year before.
Today, nearly every street in Kampala has a business with connections to China or, at the very least, is selling items imported from the Asian giant.
Among the major sectors where private and state-owned Chinese companies have invested heavily is electricity generation, where three Chinese companies are constructing hydro-electricity generation plants in Karuma, Isimba and Ayago; oil production, at the Kingfisher Oil Field in Lake Albert; construction of more than 500 kilometres of Uganda’s road network; development of the manufacturing, telecommunications as well as the information and communications technology (ICT) sectors.
The $3.4 billion funding for the three hydro-electricity plants was reportedly secured by President Yoweri Museveni directly from China’s President Xi Jinping, when the two leaders met on the sidelines of the BRICS Summit in Durban, South Africa early last year.
In a meeting with an 80-man delegation from China’s National People’s Congress last September, Prime Minister Mbabazi, who doubles as the secretary general of the ruling National Resistance Movement party in Uganda, noted that China has in the past financed projects in Uganda to the tune of $40 million.
“Uganda has benefited from development finance from the China Exim Bank, which has facilitated the country’s pursuit of strategic national development objectives,” he said.
Although the balance of trade is heavily tilted in favour of China, Uganda has also made a number of inroads into the market of the world’s leading commodities consumer.
The latest statistics from the Chinese embassy in Kampala indicate that Uganda’s exports to China rose by 65 per cent to reach $443 million in 2012.
Part of that growth is down to the preferential treatment given to goods from Uganda (along with other African countries). The arrangement, first announced during a China-Africa Summit held in 2006 but which took effect last year, offers duty- free access to 466 items from African countries like Uganda to the Chinese market.
According to the Chinese ambassador to Uganda, Zhao Yali, these items include copper ash, sheepskin leather, frozen fish, fish flour, raw or roasted cocoa beans, cotton linters, vanilla and decaffeinated coffee.
Uganda is one of Africa’s leading producers of coffee. It harvests large quantities of fish from Lake Victoria and was until recently one of a leading producer of vanilla in the East African region.
In the recent past, the government has also been working on reviving copper production at the Kilembe mines in the western part of the country.
From the modest beginning of the early 1990s, China is now Uganda’s largest trading partner, accounting for at least 30 per cent of all foreign trade.
Analysts say besides its large appetite for the raw materials exported by countries like Uganda, China has managed to develop close economic ties with the East African nation because of its non-interventionist approach in the politics of countries with which it is doing business.

The Observer (Kampala)

Uganda: Letter Bomb Sent to Speaker

By Sadab Kitatta Kaaya, 3 February 2014
If Parliament Speaker Rebecca Kadaga had personally opened all correspondence addressed to her two weeks ago, she could have been a victim of a bomb delivered in one of the parcels sent to her office.
Instead, it is an attendant at Kadaga's Parliament office who suffered serious facial injuries after opening the "letter bomb" sent to the speaker.
The attendant, Herman Kaboggoza, was rushed to Mulago hospital, where he spent a week in intensive care. By Friday, Kaboggoza was reported out of danger, although he is still recuperating at Mulago.
The Observer has learnt that Kaboggoza picked the parcel from Kadaga's mail box at the general post office in Kampala.
"When he reached office (Parliament), he opened the parcels and one of them exploded in his face," a staffer in Kadaga's office said.
The incident happened a fortnight ago, while Kadaga was out of the country on official duty.
"Because the letter was addressed to Kadaga, they [senders] could have thought that she would be the one to open it," a source familiar with the incident told The Observer.
According to the Wikipedia, the free online encyclopedia, a letter bomb, also called parcel bomb, mail bomb or post bomb, is an explosive device sent via the postal service, and designed with the intention to injure or kill the recipient when opened.
Some countries have agencies whose duties include the interdiction of letter bombs and investigations into letter bombings. Sources at Parliament said the senders of this letter with explosive implants could have hoped that Kadaga would open the parcel.
Instead, the 'letter bomb' as our source at Parliament termed it, blew up in the face of an unintended target because at the time, Kadaga was away attending international conferences in New Zealand and Geneva (Switzerland).
Most Parliament staff are tight-lipped about the incident. Parliament's Public Relations Manager Helen Kawesa seemed surprised when asked about the incident.
"How did you learn about that? Well, I am on leave, I have not been around; so, I don't know," Kaweesa said by telephone, adding; "That is Ranny's [Ismail, Kadaga's spokesperson] area, maybe talk to her."
Several police officers at Parliament, including those attached to Kadaga's security detail, were also hesitant to speak about the attack. But their body language and facial expressions indicated that they knew a thing or two about the incident.
"Don't ask me, I know nothing about it," said a senior police officer attached to Parliament.
When contacted, Ismail declined to comment. She said she had been away with Kadaga attending the Inter-Parliamentary Union (IPU) Speakers' and Presiding Officers' conference in New Zealand and the Women Speakers' forum conferences in Geneva.
"We are just reaching home (from the airport), we have been away, I haven't got any brief on what has been happening at Parliament, maybe I will be in position to comment next week," Ismail said by telephone on Friday.
We have however established that the investigation has been taken over by the Joint Anti- Terrorism Taskforce (JATT).
Police Spokesperson, Judith Nabakooba, said she could not comment on the matter since it was being investigated by JATT, which comprises operatives from several security agencies.
Last December Kadaga shocked the House when she told MPs about an incident in which a train nearly crashed into her car near Mukwano Industries in Kampala as she was being driven back home.
"If it had not been for the alertness of my drivers, I would have been history today, last night; a train almost crushed me to pieces as I was crossing the road near Mukwano industries," Kadaga told Parliament on December 12.
The speaker, whose motorcade enjoys the right of way, told MPs that the train emerged from nowhere without the usual warnings. Kadaga asked the Transport minister Abraham Byandala to look into it. However, The Observer could not establish last week if a formal investigation had been concluded, or even undertaken.
The 57-year-old Kamuli Woman MP enjoys lots of public goodwill, largely because she is seen as an independent speaker who stands up to the executive's excesses.
And of recent, the Second National Vice Chairperson of the NRM has been touted by her supporters as a potential presidential candidate in 2016, alongside Prime Minister Amama Mbabazi and former Vice President Gilbert Bukenya.
Some MPs interviewed believe she has become a target for possible assassination. Other legislators, however, suggested that she could be targeted by the homosexuality lobby given her role in the hurried December 20 passing of the Anti- Homosexuality Bill.

The Observer (Kampala)

Uganda: Understanding China, Uganda's New Big Daddy

By Jeff Mbanga, 9 July 2013
China has been all over the place lately, cherry-picking companies where it thinks it can generate revenue, and offering free money in projects that will get it a couple of nice newspaper headlines.
For the last three weeks, Uganda has been treated to news of China either taking up a large economic project or offering the country some sort of aid.
The award of the 600MW Karuma hydropower plant to China's Sinohydro, to be constructed for close to $1.7bn, is by far the biggest of them all. Other interesting news is the consortium of Chinese firms that won the bid to revive the Kilembe copper mines.
The consortium will spend about $175m in the initial stages to turn around the mines. Add up all these investments, and China arguably becomes the biggest investor in Uganda. Then there was a brief of China giving Uganda a grant of $8.2m without specifying where exactly Uganda should spend the money. Now, that's the kind of offer most African countries will grab with open arms.
It is so easy to see why Uganda has fallen for China's magic spell. Europe, where Uganda used to look for monetary support, continues to undergo an economic squeeze as a result of its debt troubles.
A bruising presidential electoral campaign in much of 2010, where the ruling party blew billions of shillings to retain the presidency, has come to haunt the public in different ways, leaving the country short of cash.
Also, Uganda's extravagance went a notch higher when the cabinet decided to buy fighter jets from Russia, when the country still had a high public expenditure bill. Cap all that with a premature and conservative Homosexuality Bill finding its way into Parliament, and Uganda had firmly set itself on a collision course with the liberal Western world.
However, financial redemption for Uganda has come in the form of China. The powerful Asian state's influence in the country now runs deep. At least three examples point to China's muscle in influencing things in Uganda.
The first example came during the oil impasse as Tullow Oil struggled to get cabinet approval for the sale of two thirds of its interests in the oil-rich western Uganda to France's Total and China's CNOOC. Tullow had sought that approval for more than a year.
It was only after a Chinese minister held a meeting with President Museveni early last year and convinced him that Uganda's oil might not have huge demand in 20 years due to the growth of other cleaner sources of energy that cabinet softened its position on Tullow's request.
The second example concerns the Karuma dam deadlock, which had dragged on for more than a year. After Museveni held a meeting with China's President Xi Jinping in South Africa earlier this year, a decision to speed up the award of the tender to a Chinese firm was finally made.
The third is the trade in downtown Kampala. Over the last two years, traders have gone on strike over hiked lending rates, increased power tariffs, and the new inspection fees. But the traders have not dared to raise a finger over the petty Chinese traders crowding out their market. One wonders why.
Do not get me wrong; we should all welcome China's investments, and a substantial part of the criticism thrown at China is unfair. No country has shown more faith and excitement in pumping millions of dollars in Uganda like China.
Here is the problem though: China has its hands on some crucial Ugandan projects that should the Asian state feel aggrieved, or face any financial meltdown, and decide to pull the plug on these investments, Uganda could be hit hard.
Such speculation aside, we need to make sure China plays by the rules. While, for example, we are willing to crucify Tullow Oil for hiring foreign expatriates at the expense of Ugandans, we need to show the same vigour when we question how CNOOC is operating.
We need to question why most Chinese projects in Uganda use Chinese materials and Chinese labour force, just as why fake products from China continue to flood our market. Unfortunately, getting these answers is a tall order, for it's difficult to get credible and comprehensive data about China's investments in Uganda.
And Ugandan regulators digging through Chinese investments to get to the bottom of the truth are like drunkards trying to find their way home in a dimly-lit street. It's a long walk home.
Jeff Mbanga is the Business Editor at The Observer.
Twitter: @jeff_mbanga


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